McDonald’s Corp. (NYSE:MCD)

The financial data presents several notable trends and fluctuations over the periods examined.

Revenue Composition

Revenues from franchised restaurants show a general increasing trend, rising from approximately 55.3% to around 61.7% of total revenues over the period, indicating a strategic emphasis on franchised operations. Correspondingly, sales from company-owned and operated restaurants declined from nearly 43.0% to about 36.0%, reflecting a relative reduction in direct company-operated activities. Other revenues fluctuate but exhibit a mild upward tendency toward the later periods, increasing from about 1.7% to above 2.0%.

Expense Trends

Occupancy expenses related to franchised restaurants fluctuate but generally maintained a range near -10% of revenues, with some periods showing slight improvement towards less negative figures. Company-owned restaurant expenses decreased notably from over 37% to an approximate range of 30–32%, signaling improved cost control or operational efficiencies in company-operated units. Other restaurant expenses remained relatively low but showed some slight increase toward the end of the timeline.

Profitability and Margins

Gross margin experienced fluctuations but overall improved from just under 50% to around 58% in the later periods, indicating better profitability or cost management. Depreciation and amortization relative to revenues remained fairly stable, generally between -1.4% and -1.8%. Operating income exhibited significant variability, with a peak near 48% and some troughs near 25%, but largely stabilized around the mid-40% range in recent periods.

Operating Expenses and Other Income

Selling, general, and administrative expenses showed variability, with a tendency to decrease from near -17% to approximately -10%, indicating some efficiency gains in administrative costs. Other operating income (expense), net, was inconsistent, showing occasional negative spikes but mostly remained near zero or slightly negative.

Interest and Nonoperating Items

Interest expense relative to revenues showed moderate fluctuations, generally holding between -4.7% and -6.3%. Nonoperating income (expense), net, was volatile with a significant negative outlier in one period but generally hovered close to zero or slightly positive values.

Overall Earnings

Income before provision for income taxes displayed variability but generally increased to a stable range near 40%, highlighting solid profitability before taxes. The provision for income taxes as a percentage of revenues varied notably, with some periods reflecting lower rates around -2.7% and others approaching -9.5%, impacting net income levels. Net income followed a pattern of fluctuation consistent with operating income and tax provisions, ranging approximately from 12.9% up to over 35%, ending the period near 32%, indicating sustained profitability.

In summary, the data reveals a strategic shift favoring franchised restaurant revenues over company-owned sales, accompanied by improved cost management in company-owned operations. Profitability measures, including gross margin and net income, indicate an overall strengthening financial performance despite some intermediate volatility in operating income and tax expenses. Expense controls in selling, general, and administrative categories appear effective, contributing positively to operating results.